Toyota Pumps In $600 Million In Didi Hinting At A New Joint Venture

By Michael Parke on July 28, 2019

Toyota has spent $600 Million in Didi Chuxing (the Chinese car-hailing platform) as a fraction of an extended Mobility-as-a-Service partnership deal that the 2 firms have in place in China. Below the agreement, Didi and Toyota will also make an entry into a partnership with GAC Toyota Motor—an organization between China’s GAC Group and Toyota—to offer vehicle-based services for Didi’s driver’s network.

“Didi is pledged to assist our areas to attain new smart transportation and energy goals with associates from abroad and home,” claimed Stephen Zhu, senior vice president at Didi, to the media. “We are looking forward to combine Toyota’s leading connected vehicle tech and Didi’s expertise in large-scale AI-supported mobility processes to develop a next-gen intelligent transportation structure for sustainable areas.”

At the beginning of 2018, Didi and Toyota worked together on e-Palette, a completely-automated battery EV. They have also piloted vehicle-based services for Didi’s drivers via intelligent analysis abilities of Toyota’s mobile services platform to offer drivers with vehicle maintenance support and safe driving guidance.

Toyota spent a hefty $500 Million in Uber previous August to mutually design self-driving vehicle techs as a fraction of a broader association between the 2 firms.

Previously this year, Didi, which controls almost 80% of the ride-sharing sector in China, declared it might slash almost 2,000 employees or 15% of its whole labor force in 2019.

On a related note, Toyota earlier claimed that it is getting into the semiconductor segment, joining hands with auto provider Denso to create a new firm aimed at chip production.

The target is to make next-gen semiconductors for employment in the automotive sector and in self-driving vehicles specifically. Media reports that this comprises elements such as “periphery monitoring sensors for automated cars and power modules for EVs.” The new firm will be controlled by the 2 firms, with Denso having 51% and Toyota having 49%.

Michael Parke leads the Business division at Market Research Magazine and has done his Master’s in Finance Management. With his more than 5 years of the overall experience at Market Research Magazine, Michael is the one who also handles the investment and taxes for the platform. Moreover, he also helps some of the content associated with the Business segment in order to enhance the viewer’s knowledge. He is also accountable to train the newbies and interns so that they get ready to work as soon as possible for Market Research Magazine and lend a helping hand. This shows the commitment Michael has.